It is important to emphasise that the duties of company directors do presently require them to ensure that they do not approve the release of misleading information (“Hardie ruling raises bar for directors", May 4).
Rather than raising the bar, the High Court of Australia decision in the
It is concerning to read the director of the Institute of Company Directors’ warning that the decision could reduce the pool of potential directors, since the decision does not result in “new duties" but simply confirms that directors must exercise their existing duties with integrity and due diligence.
We hope they do and that potential new directors have, before as well as after this decision, taken the role with a clear understanding of this obligation and its implications for the effort and research they put into the performance of their duties.
The Australian Financial Review